British luxury department store chain Selfridges is being sold to a Thai retailer and an Austrian property firm. The deal for the majority of Selfridges Group is worth around £4bn ($5.4 billion).
Thailand’s Central Group, family-owned retail, real estate and hospitality group, and Signa, one of Europe’s leading real estate and retail groups, have entered into a definitive agreement to acquire Selfridges Group, a luxury retail group, from the Weston family.
Founded in 1908 by U.S. retail magnate Harry Gordon Selfridge, the Selfridges Group portfolio comprised of 18 department stores, including Selfridges in London, Manchester and Birmingham, de Bijenkorf in Netherlands, Brown Thomas and Arnotts in Ireland, their associated e-commerce platforms and the properties in London, Manchester and five locations in Ireland.
The Canadian wing of the billionaire Weston family bought Selfridges for nearly £600 million in 2003.
The transaction will see Selfridges Group become part of the combined Central and Signa portfolio of luxury department stores, which owns Rinascente in Italy, Illum in Denmark, Globus in Switzerland and The KaDeWe Group, which operates in Germany and Austria, starting in 2024. The proforma annual turnover for the combined department stores portfolio was EUR 5 billion in 2019 and is projected to grow to more than EUR 7 billion by 2024.
Central and Signa will operate all the stores in Selfridges Group including Selfridges, de Bijenkorf, Brown Thomas, and Arnotts, which will continue to be run by the existing leadership teams and its e-commerce platforms and operating companies. The Canadian business Holt Renfrew will remain with the Weston family.
The Central and Signa 50/50 partnership will build on Selfridges’ foundations and luxury online customer offering, developing an integrated and omnichannel proposition, with exclusive online stores as an extension of its physical stores.
Tos Chirathivat, executive chairman and CEO of Central, said: “It is a privilege to be acquiring Selfridges Group, including the flagship Oxford Street store, which has been at the center of London’s most famous shopping street for over 100 years. As family businesses, Central and Signa will focus on delivering exceptional and inclusive store and digital experiences for both local residents and overseas visitors alike, to ensure we can give all the stores in Selfridges Group a bright future for the next 100 years. We are looking forward to working with the management teams and the colleagues across Selfridges Group, as we seek to create a world-leading luxury, retail company.”
Dieter Berninghaus, chairman of the Executive Board of Signa, said: “We are excited to be acquiring Selfridges Group in partnership with Central. Together we will work with the world’s leading architects to sensitively reimagine the stores in each location, transforming these iconic destinations into sustainable, energy-efficient, modern spaces, whilst staying true to their architectural and cultural heritage. We plan to fulfill the vision of the late Galen Weston to deliver his master plan and create a high-quality experience retailing environment for our customers and brand partners.”
Alannah Weston, the chairman of Selfridges Group, said: “The acquisition of Selfridges Group by Central and Signa is testament to the successful realization of my father’s vision for an iconic group of beautiful, truly experiential, department stores. Creative thinking has been at the heart of everything we did together for nearly twenty years and sustainability is deeply embedded in the business. I am proud to pass the baton to the new owners who are family businesses that take a long-term view. I know they will fully embrace that vision and continue to empower our incredible team to take the Group from strength to strength.”
Photo courtesy CNN Business
